Earnouts: Structure for Breaking Negotiation Deadlocks

This whitepaper features Senior M&A Executive Javier Enrile of Principal Global Investors. Mr. Enrile provides his extensive expertise to explain how earnout, (also "earn-out") structures work and how it can reduce risk for the buyer, add attractive incentives for the seller, and serve to break negotiation deadlocks and get deals consummated.  

In this whitepaper you’ll learn:

  • Benefits and Risks

  • Circumstances where Earnouts are best used and are most effective

  • An analytical framework for understanding Earnouts’ structural elements

  • Empirical evidence that Earnouts do also serve as an effective downside/risk mitigation tool.